OSC Compensation & Salary Structure – Part 5 of 5

Posted by
Mike Lyon
Date
 November 5, 2007

One of the questions I am most frequently asked by a builder or sales manager is, “How much should I pay an OSC?” Usually, there is a slight cringe on their face because this is a new position that they will have to work into their budget. In fact, this is a large barrier for most builders. Typically, they are planning on hiring an administrative-type person who will handle the leads in addition to other tasks. They are planning on trying to keep the cost of salary as minimal as possible. That may work for smaller builders with leads less than 50 per month; but if you really want to convert more sales, you need to compensate the OSC in the same range as an Onsite Sales Agent.

Remember, this person has many of the same responsibilities as the Onsite Agent and will be increasing your sales 5 to 10 percent and ensuring that you do not lose sales to your competition. This is a new breed of salesperson and needs to be compensated accordingly.

You may be questioning my recommendations, but I have seen the difference in conversion rates of the OSC who is an “information giver” and those professionals who focus on “closing appointments.”

There are many ways to structure a compensation package for an OSC. You can either set up a straight commission package or a base salary plus commission. Commissions are to be paid per appointments (that are kept) and per contracts. By paying for appointments set and kept, the OSC will be motivated and focused on setting the appointment. This is the number one factor that leads to a sale.

Determining a salary structure is complicated and based on many factors that vary for each builder, such as the cost of living in that area and the job responsibilities of an OSC. Ultimately, you need to make sure the OSC is continually motivated by the commission structure and has a fair compensation that’s equal to an onsite sales agent.

Do not take the bonus out of the Onsite Agent’s commission.

This breeds contempt for the OSC and will taint the appointments. The OSC should be every Onsite Agent’s best friend. They should treat the appointments from the OSC like a Solid Gold, A++++, Super Hot Lead.

Over time, as the program grows, you will need to revisit the pay structure to confirm that it is fair. Also, there could be times where an OSC is not pulling his or her weight. You should be able to determine job effectiveness through tracking and reporting. I review measuring the effectiveness of your program in Chapter 12 of the my manual – Browsers to Buyers.

Read Part 4 of 5 – Hiring an Online Sales Counselor >>